Govt gets nod to issue $2.5bn in bonds

Parliament has given approval to the government to issue $2.5 billion bonds to refinance maturing external bond and expensive domestic cedi denominated debt.

Parliament granted the request for the government to issue the 2018 Sovereign Bond and Global Depository Note to use $1.50 billion to refinance maturing external bond, including the 2022 and 2023 Eurobond.

The government also got approval to use GH¢500 million to refinance expensive domestic cedi denominated debt.

The House again gave approval for the government to use $1 billion to finance the 2018 budget.

Committee's report

The bonds were approved last Friday after the presentation of the report of the Finance Committee, which recommended the approval of the bonds.

The Chairman of the Finance Committee, Dr Mark Assibey-Yeboah, said the 2018 budget made provision for the raising of a sovereign bond of $1 billion as well as a possible refinancing of the existing bonds.

Minority's contentions

The Ranking Member on the Finance Committee and Minority Spokesperson on Finance, Mr Cassiel Ato Forson, said the government was not fiscally prudent or disciplined with its management finances.

The Minority Leader, Mr Haruna Iddrisu, said the issuance of more bonds was contrary to the government's slogan of Ghana Beyond Aid.

Majority's rebuttal

The Minister of Health, Dr Kwaku Agyeman Manu, said the erstwhile National Democratic Congress (NDC) government claimed it was doing smart borrowing, and indicated that the current government was rather doing prudent borrowing.

He said proceeds from the bonds would be used to complete projects started by the NDC government.